A certified management accountant (CMA) is an accountant who works in corporate financing, accounting and as part of a strategic team in an organization. The CMA credential is recognized globally. They have very important roles within an organization and have a strong knowledge of accounting principles and budget analysis. Here is an overview of the certified management accountant as a worker and as a career.
See our ranking of the 30 Top Affordable Master’s in Accounting / Master of Accountancy Degree Programs.
What is a Certified Management Accountant?
A certified management accountant is a professional or financial specialist who works in the areas of financial planning, analysis and account management for an organization. The CMA’s main goal is to improve company performance from a financial standpoint. They analyze data, crunch numbers for internal reviews and contribute to business decisions regarding the financial status of the company. CMAs also work with other workers, such as financial strategists, cost accountants, FP&A managers, management accountants, risk managers and budgeters and coordinate to designate improvements that will benefit the financial strength of the company.
How to Become a CMA
The requirements to become a CMA are mandated by the Institute of Management Accountants (IMA). The candidate should have a bachelor’s degree in accounting, economics, finance or a related field. The degree program should have a focus on business studies like management, marketing, business law, and taxation. Before the candidate can earn the CMA credential, he or she must complete at least two years of CMA-related work experience. This can be full or part-time hours, and it can be completed while the individual is a student as well as before or after taking the CMA exam.
Once the student has earned the degree, the student must become a member of the IMA and register to take the CMA certification exam. The certification exam consists of two parts, and each part includes two essays and 100 multiple-choice questions. Once the student passes the exam, certification has been earned. To maintain certification, the CMA must complete 30 hours of continuing education credits.
Difference Between CMA and CPA
While there are several differences between a CMA and a CPA (certified public accountant), the main difference is in the work they perform. CPAs perform audits, represent companies during IRS audits and do a lot of tax work. The CMA is knowledgeable in both strategic management and financial accounting. CMAs generally work for private companies, while CPAs work for public accounting firms. CMAs take a 4-part certification exam, but CMAs only take a 2-part exam. CMAs must have at least two years of work experience to be licensed, while CPAs may be licensed with only a year of experience depending on the state. Another difference is that the CPA is a state license, whereas the CMA is a global certification.
Career Outlook for Certified Management Accountants
Accountants are projected to see a 10 percent job growth from 2016-2026, according to the U.S. Bureau of Labor Statistics (BLS). As of May 2017, accountants earned an average annual wage of $77,920 with some wages going as high as $122,220 or more. Accountants who are certified like the CMA tend to bring in higher wages and better job options.
As long as we continue to have large businesses and corporations there will continue to be a need for accountants to handle the financial records and ensure their profitability. Despite the education, training, and exams required to become a certified management accountant, working as a CMA can be an extremely rewarding and challenging career.
